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Fraud has been of concern for many corporate managers and regulators since many businesses have been victim of business failures. Business failure corporations have reported and become an element of fraudulent financial reporting.Therefore, the first aim of this study is to examine whether a collective prediction tool can be used to predict business failure and fraudulent financial reporting.The second and more important objective of this study is to examine whether business failure companies are associated with fraudulent financial reporting. The collective prediction tool is based on ratio analysis, Beneish M-score model and Z-score model. Using publicly available information in the annual reports of 24 failed firms matched with 24 non-failed firms listed on Bursa Malaysia, relevant information are extracted and applied in the three models to assist in predicting business failure and detecting fraudulent financial reporting. A total of 10 ratios, cash conversion cycle, Beneish M-score model and Altman's Z-score model were identified for examination as potential predictors of business failure and fraudulent financial reporting. Based on the results, the model was accurate in classifying the total sample of approximately 96 per cent as predictors of business failure and approximately 83.3 per cent as predictors of fraudulent financial reporting as well as predicting the relationship between business failures and fraudulent financial reporting. Hence, it can be concluded that these model functions effectively and can be adopted by regulators, bankers, management, internal and external auditors and to the forensic accountants so that proper preventive or corrective action can be taken to mitigate fraud at its inception.

This book explores the contribution of corporate CEOs and their top lieutenants toward business success and failure. By looking at the three most recent economic crises, the S & L crisis, the dot-com bubble, and the recent subprime mortgage disaster, the author explains why and how corporate managers led their organizations toward disasters in the long-run, and explains the recent destructive collaboration within the organization, across the industry, and between business and government.

The aim of this paper is to identify the adequate entrepreneurial support elements for business restarting after business failure. An exploratory study was conducted with fifteen SMEs within the interpretivist paradigm. The study reveals a matrix of factors that make for adequate entrepreneurial support to assist restarting business. In addition, this study shows that psychological coaching is an efficient remedy to reduce emotional shock after experiencing unplanned failure whereas social coaching is an efficient support of integrating successor following a planned failure in some social network. However, current thinking on incubation should be increased in order to help with business recovery especially as there is a high failure rate associated with startups. This research attempts to ensure a possible relationship between entrepreneurial support practices and failing entrepreneurs' needs.

The use of statistical models to predict business failures has received considerable attention in recent decades. However, very few studies have been devoted to predicting failures of cooperative societies, which play an important social and economic role in many sectors and possess certain characteristics that distinguish them from investor-owner companies. This paper develops a statistical business failure prediction model specifically for cooperative societies and identifies the most powerful predictive variables. This is done by applying logistic regression to a sample of Spanish agricultural cooperatives with financial indicators as explanatory variables. The prediction models obtained, capable of predicting failures one or two years before they actually happen, reached an accuracy level of more than 94%. The best predictors confirmed the importance to cooperatives of having a minimum amount of capital available to ensure their financial independence, which could be put at risk by virtue of the cooperative principle of ¿voluntary and open membership¿, especially when financial problems appear on the horizon. The importance of the results-based indicators was also shown, which could be considered as obvious, given that the objectives of cooperative societies is to obtain the greatest possible advantage from the activities carried out for their members. ; Mateos Ronco, AM.; López Mas, Á. (2011). DEVELOPING A BUSINESS FAILURE PREDICTION MODEL FOR COOPERATIVES: RESULTS OF AN EMPIRICAL STUDY IN SPAIN. African Journal of Business Management. 5(26):10565-10576. doi:10.5897/AJBM11.1415 ; S ; 10565 ; 10576 ; 5 ; 26

Purpose
This study aims to evaluate the role of entrepreneurial ecosystems conditions (formal, informal and social capital) on different types of entrepreneurial re-entry at a global scale.


Design/methodology/approach
Given this phenomenon's nature, this study builds a panel of data of 54 economies covering different (advanced and emerging) countries across the globe during the period 2004–2017 by mixing multiples sources of information (e.g. Global Entrepreneurship Monitor, the World Economic Forum, the World Bank and the International Monetary Fund). The statistical analysis consisted of the fixed-effect dynamic generalized method of moments (GMM) estimation for panel data.


Findings
Three empirical insights emerge from the study. First, the entrepreneurial ecosystem's formal conditions are mainly configured to support high-growth entrepreneurship ignoring re-entrepreneurs. Consequently, the formal conditions' contribution is very limited in emerging economies. Second, the analysis of informal conditions revealed social media's critical contribution for legitimizing entrepreneurship and supporting those entrepreneurs who want to re-enter the domestic or international market after a business failure. Third, social networks built during previous business angels or entrepreneurial experiences or with other entrepreneurs also play a crucial role for re-entrepreneurs to overcome the weaknesses in the entrepreneurial ecosystems' conditions.


Originality/value
The study contributes to two ongoing academic debates among entrepreneurship scholars. The first is related to how the entrepreneurial ecosystem supports entrepreneurial activity in different economic contexts. The second is related to the study of the contextual determinants of entrepreneurial re-entry after a business failure.

This paper examines empirically the effectiveness of entropy measures derived from information theory combined with discriminant analysis in the prediction of construction business failure. Such failure in modern complex supply chains is an extremely disruptive force, and its likelihood is a key factor in the prequalification appraisal of contractors. The work described, using financial data from the Taiwanese construction industry, extends the classical methods by applying Shannon's information theory to improve their prediction ability and provides an alternative to newer artificial-intelligence-based approaches.

PurposeTo investigate the innate reasons for one of the biggest business failures of a Western Multinational Corporation (WMNC) in Eastern Europe – the failure of Rover in Bulgaria. The main proposition of this study seeks to focus on the importance of gaining adequate knowledge about the prevailing economic ideology and specificity of the socio‐cultural value orientations in the host country as a critical factor to prevent a business failure in Eastern Europe.Design/methodology/approachArchival materials, including media publications, company documents, and government records (1991‐1998), along with personal interviews providing pieces of information about what actually happened with Rover in Bulgaria during the 1990s. Questionnaire‐based surveys were also used to do a cross‐cultural comparison between the UK and Bulgaria.FindingsRecognising that the failure of Rover in Bulgaria that appeared to be caused by bad luck could be actually pointed out as a case showing that the lack of adequate knowledge of the prevailing economic ideology and cultural‐value orientations would likely lead to a fiasco in Eastern Europe.Practical implicationsProactively learning from mistakes can secure successful performance of WMNC in Eastern Europe and make these companies much less vulnerable to occurrence of (unlikely) events or accidents in this part of the world.Originality/valueThe case study presents insights from an original investigation in the form of lessons for WMNC.

Purpose– This study aims to examine the types of attributions after a business failure. Although business failure has garnered a plethora of scholarly attention, there remains an ambiguity and a lack of clarity about the process and types of attribution after a business failure.Design/methodology/approach– The paper is based on a synthesis of the multiple streams of research on the subject. This led to the development of an integrated framework of attributions after business failure.Findings– The paper integrates the business failure literature and attribution theory to develop a 2 × 2 conceptual framework which accounts for not only the effect on pace (time) but alsolocusof causality in the attribution process. Crossing the two main causes of business failure with two types of attribution produces the 2 × 2 matrix of types of attribution after a business failure which includes early internal attribution, late internal attribution, early external attribution and late external attribution.Research limitations/implications– The theorisation of the literature offers a number of implications for theory and practice.Originality/value– The study also explains the underlying processes inherent in learning from others' failures and consequences of business failure. The framework removes some of the ambiguity in the existing literature and outlines a number of fruitful avenues for future research.

This study aims to uncover the chain of Village Owned Enterprises (BUMDes) business failures in the West Halmahera Regency. BUMDes business is a village government business that is run to achieve the goals of profit and society welfare. Empirical facts show that after the Village formed BUMDes and made a sizeable Equity Participation in BUMDes, what happened was that BUMDes BUMdes businesses experienced suspended animation. As a result, until now, the existence of BUMDes has not been able to contribute to Village Original Revenue and improve the welfare of rural communities as expected by the Village and the Community. The researcher uses a qualitative approach with the Transcendental Phenomenology method to achieve this goal. The research information includes elements of the village government, BUMDes managers, and village communities who have been in contact with BUMDes. The study results provide evidence that the failure of the BUMDes business is caused by the high conflict of interest of the village head and the indifference of the Village Consultative Body (BPD) towards BUMDes. This research contributes theoretically to the development of regional financial management science and information material for the West Halmahera Regency Government to make it easier for local governments to break the chain of failure of the BUMDes business.